Laundromat Resource › Forums › Laundromats › Replacing WDF with more coin laundry
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June 13, 2020 at 7:16 pm #1777
Hey Jordan,
I’m looking at an existing coin laundromat to buy that also offers WDF. If the WDF business is 30% of the overall revenue, does it make sense to replace it with more self service coin machines factoring in the cost of labor and maybe the challenges that go along with managing employees? What else should be considered? Thanks for all you do!
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June 14, 2020 at 12:00 am #1779
Interesting. So are you asking if you should cut out the wash and fold part of the business and in the space where you did you wash and fold put in new machines instead?
From what Jordan has said in the podcast or youtube videos, i forget which, he thinks there is a bigger upside in the wash and fold I think. Maybe he’ll chime in.
I’m not really experienced but it seems pretty risky to me to cut out 30% of your business and try to build up the self service more than 3o% to replace it. Why not do both?
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June 14, 2020 at 4:22 am #1781
Hi AnneMarie. Thanks for your response. Yes, I am wondering about replacing WDF with more machines. I agree that it could definitely be risky. I suppose you would have to determine if the local demographics could support more machines. If it’s close, is it offset by the savings in employee wages, supplies etc and the challenges that accompany managing employees. Certainly the large investment in machines is a big factor as well .
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June 17, 2020 at 12:24 am #1816
Hey Corey!
Super interesting! I actually brought it up on the podcast this week because I thought it was so interesting. I’m really hoping a few people chime in on it!What I hear you saying is that you value the simplicity of laundromats. Am I understanding that correctly? It’s one of the big reasons I got into the industry so I get that.
With that said, taking a 30% cut and hoping you can increase walk-in traffic by that much at least seems like an uphill battle. Don’t count on that many people coming to your laundromat just because you put in more machines. You may get some new customers because of it, but probably not 30%.
So, the question becomes, what is your strategy for increasing business at least 30% to cover the lost WDF business? And, if you do come up with a strategy, could it be implemented while maintaining the WDF part of the business?
If so, it would probably be worth coming up with strategies to streamline the WDF part of the business to make management simpler and just enjoy the benefits of the increased business.
Those are my initial thoughts on it? What do you think?
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July 20, 2021 at 1:14 pm #6433
Few things I think people are overlooking here is the spend per customer. With Wash, Dry and Fold it is typically a $23+/ average order. With a self-service machine it may be $5.00 for a small wash and dry. You are also spending a larger percentage of utilities on a self-serve order as well (e.g.- you use the same 20 gallons of water for a $23 order as you do for the $5.00 customer). Customer loyalty is also much higher when they do WDF. Yes, it is more employee headaches, but in my opinion it is well worth it and provides fully attended service for your self-serve.
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July 13, 2021 at 10:47 am #6382
This is an old thread, but I’m very interested in the topic…
I am also attracted to the laundry business due to its (potential) simplicity. I would be looking for a way to keep the WDF revenue, but simplify.
What if you could take WDF orders from customers and outsource the labor to another operator or commercial laundry? Similar to the relationship with a dry cleaners, you would be a drop store for WDF. You could market, acquire new customers, and maintain the customer relationships. But not necessarily take on the task of doing the laundry.
Pros:
Your operation is simpler than it was before.
You could keep the WDF customer base.
You would still get to keep a portion of the revenue.
You could even scale up your WDF business without having to make many operational changes.
You could always do the laundry in the future if you wanted to keep more profit.Cons:
You are giving up some profit.
You are giving up some control over the the WDF operation.My question to someone more familiar with operating WDF…
Is this happening in the real world?
Would a commercial laundry ever take somebody like us as a client?
Will there be enough spread between the price the customer pays and the price we pay the commercial laundry to make being a middle-man worth the effort? -
July 15, 2021 at 8:48 pm #6397
One possibility is to give the WDF business to current employee.
The employee becomes a business owner (the WDF) instead of an employee , pays to use your machines like self-serve customers and provides his or her own supplies.
In return they still keep your store clean and semi-attended.
Now you don’t have the payroll/employee issues anymore yet have someone in the store to keep it clean and deal with customer issues. Now your former employee is a caretaker (at no charge) and a very regular self-serve customer.
Just a thought.
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Laundromat Resource › Forums › Laundromats › Replacing WDF with more coin laundry